St. The president of the Louis Federal Reserve believes that Bitcoin does not pose a threat to the US dollar’s global reserve currency status.
In an interview with CNBC on Tuesday, James Bullard said that the Fed’s policy focus will remain “as far as the eye can see” on the global dollar economy.
“Rising or falling gold price or rising or falling bitcoin price doesn’t really affect the dollar,” Bullard said.
The head of the Fed stressed that “privately issued” cryptocurrencies that are not approved by the government are the main problem.
Bullard then made comparisons in US history with a time before the Civil War when banks issued their own banknotes.
“They were all trading and trading with each other at different discounts,” Bullard said. People didn’t like that at all. I think the same goes for Bitcoin here. ” says.
The head of the St Louis Fed also stated that investors are looking for a safe haven amid a “currency rivalry” as they have been doing for centuries by likening bitcoin to gold.
“It will be very difficult to get a special currency that really looks more like gold to play this role. So I don’t think we will see any changes in the future, ”he said.
Bullard’s comments came at a time when Bitcoin reached an all-time high, backed by strong corporate demand such as automaker Tesla, business intelligence firm MicroStrategy, and corporate investment bank BNY Mellon.